TaxTMI 
TaxTMI 
2021 (10) TMI 311
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....enkatalakshmi Paper and Boards Private Limited. The company is involving in manufacturing of newsprint papers and paper boards. It is one of the major suppliers of newsprint papers to the most reputed daily newspaper companies and other publishers in the country. For the purpose of manufacturing of the newsprint papers, the company imports old, waste and unused papers from various countries, such waste papers will be imported to India through ships by paying necessary customs duty. Mostly, the company import such kind of waste papers through Tuticorin Port. 3.Like that the petitioner has imported such kind of waste papers from a supplier from New Zealand, namely, one M/s.Oasis Imports and Export New Zealand limited. Accordingly, an agreement was reached between the petitioner and the supplier on 04.06.2021, pursuant to which 63 metric tons of waste paper and old books had been imported by the petitioner through Tuticorin Port. The consignment could reach the Tuticorin Port on 05.07.2021, however, before which, that is, on 03.07.2021, the petitioner had given a request letter to the respondent Customs Department that, since the imported goods are waste papers in the book form and....
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....h entered on 04.06.2021, under which importing of 63 metric tons waste papers and old books had been agreed upon, the gross value of the item comes only around Rs. 13,00,000/-(Rupees Thirteen lakhs only) and therefore, based on which, the bill of entry were produced on 05.07.2021, the date on which the goods were expected to reach the port, however prior to the goods reached to the port, that is, on 03.07.2021, the aforesaid letter had been given by taking a definite stand on the part of the petitioner/importer that, it is a wastepaper in the book form, therefore, it can be released as such as per the declaration made by the petitioner otherwise, if the Customs Department feel that it cannot be treated as a waste paper, because it is in the book form, it can be mutilated and or denatured and accordingly, the same can be released. 7.The learned Senior Counsel would further contend that, despite the definite stand having been taken by the petitioner well before the goods reached to the Port, that is, before the Customs Department takes a view as to what exactly the form of the goods in question imported by the petitioner, the petitioner since has made its stand definite and reques....
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....is that Collector of Customs v. Hardik Industrial Corporation, reported in 1998 (97) ELT 25 SC: (1998) 1 SCC 494 and the second case is Union of India v. Madanlal Steel Industries Ltd., reported in 2001 (132) ELT 526(SC). 11.By relying upon these two decisions of the Hon'ble Apex Court, the learned Standing Counsel would further submit that, in those cases, it has been made clear that, the time of declaration is relevant, and in the present case, the declaration admittedly was made by the petitioner only just two days prior to the goods reached to the port, by giving a letter on 03.07.2021 stating that, if at all the Customs Department wants to mutilate it, the petitioner will be ready and willing to go for such process. 12.Even in the said letter, dated 03.07.2021, it has been definitely made by the petitioner/importer that, it is brand new book, however it is being imported for the purpose of making it as a paper pulp in its industry. Therefore, there has been a wavering statement on behalf of the petitioner/importer as to the nature of the goods imported, no indefinite stand was taken by the petitioner even in their letter, dated 03.07.2021. Only after the goods was fo....
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....the form of the wastepaper is in book form and assuming that these books are new books or brand new books, and the same had been imported by the petitioner for the purpose of making it as a paper pulp, it has to be taken note of the fact that, if really the goods in question are more worthy than what has been declared by the petitioner, and if these goods are brand new books, which have been imported by the petitioner for different purpose to sell the same in the market for their price, certainly, the value of the goods could be multifold than what has been stated in the agreement. 17.In such case, no prudent importer would voluntarily come forward to mutilate such goods. Assuming that if the seized goods are facing the adjudication and ultimately if the Customs Department found that it is a mis- declared goods for which, there should be a customs duty, redemption penalty, etc., imposed against the petitioner/importer, instead of meeting the same, the petitioner/importer cannot loose the value of the entire goods in question to mutilate the same, if really, it is a worthy book to be sold in the Indian market, for its original market price. 18.Further, it is to be noted that, ....
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....definite stand about the nature of the goods that has been imported, the following words "Wastepaper-books with covers for Re-pulping with Hard and Soft covers" explicitly disclosed that the goods in question is wastepaper books with hard and soft covers. 20.Merely because the goods in question is in the form of books, may be a new book or old book, it cannot be stated that, it is only a book for different purpose to sell in the market and not to be used as a wastepaper for making the pulp in paper industry. 21.In normal parlance, if a paper in the book form is not going to be utilised for any reading or reference purpose, and it is going to be utilised for waste paper purpose, eventhough if it is in a new book form or a brand new book form, that can only be treated as a wastepaper. Moreover, the petitioner since has come forward voluntarily before the goods reached the port, that they are ready and willing to go for denaturing or mutilation of the goods in question, that should have been taken in to account by the Customs Department on the goods reaching the port, after verifying the goods in question comparing with the request or stand taken by the petitioner through the le....
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.... good, therefore, it is to be confiscated with redemption right. 27.Therefore these circumstances, if we looked into by applying the preposition held in the two cases referred to above, certainly the petitioner can be differentiated in view of the facts, which we have narrated above, therefore, this Court feel that the subsequent action to conduct an inspection on 08.07.2021, and a further inspection by a special team on 23.07.2021 followed by the seizure under mahazer, are all may be a unwarranted exercise, even if the goods in question, are to be treated only as books, they could have very well allowed the books to be mutilated for which the petitioner had already expressed his willingness on 03.07.2021 itself. Therefore, the argument advanced by the learned Standing counsel appearing for the Customs Department that once the goods are seized that will be followed by the procedure to be adopted in conducting adjudication after giving show cause notice, then only, the decision as to whether the goods in question are a properly declared goods or mis-declared goods can be decided, does not arise in the present case at all. Therefore, merely because a seizure has been taken place, ....